The bullion market in Ahmedabad witnessed a historic surge on Monday as prices of gold and silver soared to unprecedented levels, mirroring a sharp rally in international markets fueled by anticipation of US interest rate cuts and persistent safe-haven demand.
Record-Breaking Prices in the City
In the Ahmedabad market, gold was quoted at a staggering Rs 1.38 lakh per 10 grams. The precious yellow metal has seen a meteoric rise since the beginning of the year, having been priced at Rs 79,200 per 10g on January 1. This translates into a massive year-to-date (YTD) gain of approximately 74%.
The rally in silver was even more spectacular. The white metal touched Rs 2.14 lakh per kilogram in the city. Starting the year at Rs 86,500 per kg, silver has registered an astonishing YTD rise of nearly 147%, significantly outperforming gold.
Global Drivers of the Precious Metals Boom
The domestic surge is firmly rooted in global trends. Internationally, gold crossed the $4,400 per ounce mark for the very first time, according to the World Gold Council. Spot gold rose 1.7% to $4,410.54 per ounce. Silver also climbed to a new record high, indicating a broad-based rush into commodity assets.
Experts point to a confluence of factors powering this bull run. Haresh Acharya, director of the India Bullion and Jewellers' Association (IBJA), explained that weakening confidence in the US dollar, ongoing global economic uncertainty, and the prospect of lower interest rates in the United States are underpinning the rally.
Analysts Decode the Market Sentiment
"Lower interest rates typically support demand for real assets like gold and silver," Acharya stated. He further highlighted the significance of the concurrent boom in industrial metals, noting, "The fact that even copper is at a record high shows investors want wider commodity exposure, possibly because inflation may remain elevated for longer."
This year has seen bullion prices post their strongest annual rise in decades. The rally has been bolstered by heavy buying from central banks worldwide, continuous safe-haven investment flows, and a general easing of monetary conditions. Analysts reiterate that while gold is traditionally a hedge against inflation and a refuge during volatility, the non-yielding asset also tends to perform exceptionally well when interest rates fall, as it reduces the opportunity cost of holding it.
The dramatic price movement in Ahmedabad reflects a global narrative of investors seeking security and value in tangible assets amidst fluctuating economic forecasts and policy shifts.
